Title
Balbastro vs. Court of Appeals
Case
G.R. No. L-33255
Decision Date
Nov 29, 1972
Dispute over apartment ownership and rent collection rights; petitioners challenged inclusion as third-party defendants, upheld to avoid multiple suits.

Case Summary (G.R. No. L-33255)

Factual Background

On July 17, 1969, lessees Chin Keng Long, Lim Bun Kong, and Rajindar Singh initiated an interpleader case to determine to whom they should pay rent due to conflicting ownership claims over the apartment from Fernandez and Butte. Fernandez, in his response, claimed he had ad interim authority to collect the rents during the dispute, which was upheld by a previous Court of Appeals decision. Conversely, Butte asserted her ownership rights to the apartment, thus claiming the right to collect all rents.

Procedural History

On October 29, 1969, Fernandez filed a Third-Party Complaint against the petitioners for their refusal to recognize his authority to collect rents from the doors they leased. The petitioners moved to dismiss this complaint, arguing its procedural impropriety under Section 12, Rule 6 of the Revised Rules of Court, which they claimed did not apply to their situation. The Court of First Instance denied the motion on November 17, 1969, and reaffirmed its decision on May 18, 1970, leading the petitioners to appeal to the Court of Appeals.

Court of Appeals Decision

The Court of Appeals, on January 20, 1971, dismissed the petitioners' appeal, stating that the lower court had not abused its discretion in allowing Fernandez to file the Third-Party Complaint. It found that including the petitioners promoted judicial economy by avoiding multiple lawsuits arising from the same issue—determining the rightful recipient of rent payments.

Legal Analysis of the Third-Party Complaint

The Court of Appeals evaluated whether the inclusion of the petitioners as parties through the Third-Party Complaint was aligned with Section 12 of Rule 6 of the Revised Rules of Court. It emphasized the discretion of the court in admitting third-party complaints, which should simplify litigation, expedite proceedings, and reduce expenses. The court found that the inclusion of the petitioners as third-party defendants serves these purposes, as all parties involved share the common issue of determining to whom rent should be paid.

Key Legal Principles

The appellate court underscored that inclusion as a third-party defendant under Rule 6 must arise from a derivative liability where the third-party defendant is potentially liable to the original defendant, thus allowing the latter to seek relief from the former concerning the plaintiff's claim. Without showing that such secondary liability existed, the third-party complaint could be deemed improper. However, given the shared predicament of the lessees to ascertain

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